Business Performance Management (BPM), also known as Corporate or Enterprise Performance Management, is a strategic approach using processes and analytical tools to align an organization's activities and outputs with its overarching goals. It involves setting performance standards, evaluating individuals and teams against desired outcomes, and implementing reward systems to measure and optimize performance, ultimately enhancing efficiency, productivity, and profitability. Crucially, BPM fosters teamwork and trust rather than competition, aligning company goals with those of employees across various sectors, from healthcare to research institutes.
By 2017, Gartner reclassified aspects of it as "financial planning and analysis" (FP&A), while thinkers like Werner Erhard and Michael C. Jensen emphasized understanding employees' worldviews and language as key to performance improvement. However, BPM's success hinges on fair implementation; it can fail if employees perceive unfairness, feel unrewarded, or if the system encourages excessive internal competition.